As a percentage of the acquirers market cap, how big does an acquisition target generally has to be to have impact on the acquirers stock price? (normally)
Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga.
Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus.
Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
Normally 10% to 150%
This is a dangerous path to go down. Let's assume that you decide that buying a target that is less than 5% of your value will have no impact on your stock price and you decide to be sloppy in your analysis. Now, let's assume that you do this twenty times during the course of a year. You have in effect created the same impact as buying a company that is 100% of your value. So, adopt the same rule that you do with capital budgeting projects. Just because a project is small does not mean that you abandon the positive NPV rule.